Tandy Leather Factory Inc. of Fort Worth has reported net income of $1.1 million in the third quarter, or 32 percent less than the $1.6 million reported in the same period last year.
Fully diluted earnings per share for the latest quarter totaled 11 cents, compared to 16 cents in last year’s third quarter.
“Even though earnings were down significantly compared to last year’s third quarter, our results were in line with our internal targets,” said president and CEO Jon Thompson in a news release.
Thompson noted that the company’s investment in inventory resulted in what he called a positive effect on sales.
“Further, our gross profit margin was supported by a number of special leather purchases last year,” Thompson said.
The company’s Retail Leathercraft division saw sales rise 2 percent, or $260,000, compared to last year’s third-quarter sales. The division comprised 82 stores as of Sept. 30, 2015.
Meanwhile, third-quarter sales for the Wholesale Leathercraft dropped by 2 percent, or $342,000, compared to the same quarter last year.
International Leathercraft, comprising stores in the United Kingdom, Australia and Spain, saw sales drop $141,000 for the quarter, or 13 percent more compared to last year’s third quarter.
Consolidated gross profit margin dropped from 62.7 percent in third-quarter 2014 to 61.1 percent in the same quarter this year.
Tandy Leather Factory Inc. sells and distributes leather, leatherworking tools, do-it-yourself-kits and many other products. Its products are distributed through its 28 Leather Factory stores, located in 18 states and three Canadian provinces; 80 Tandy Leather retail stores, located in 36 states and six Canadian provinces; and four combination wholesale-retail stores in the United Kingdom, Australia and Spain.
More information is available at www.tandyleatherfactory.com.